West Asia crisis: Government ready with energy, fertiliser stocks
The Indian government is preparing energy and fertilizer reserves in response to escalating conflict in West Asia. Rising freight rates and oil prices pose significant risks to India's currency, trade deficit, and supply chain stability.
Why it matters
Geopolitical instability in the Middle East directly threatens global supply chains and the economic stability of emerging markets like India.
NEW DELHI: As war clouds gather over West Asia once again, govt seems better prepared with energy and fertiliser stocks, but higher oil prices will hurt the currency and deficit levels, apart from foreign portfolio investment, which is already under strain.Besides, the already-elevated freight rates — nearly 10 times the pre-war level on certain routes — will spike further as insurance premiums rise in an environment when finding vessels and crew to go into the Strait of Hormuz is often difficult. This will have an impact on exports as well as the entire supply chain when container shortages are seen in the eastern hemisphere, along with port congestion in certain parts of the world.On Oct 22, the Drewry World Container Index was at $4,585 for a 40-feet container, compared with $1,746 on Oct 25, 2025.“It is already pushing freight rates beyond a point.
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